Peloton Acquires Fitness Equipment Giant Precor to Boost U.S. Production
It’s been a busy year for Peloton, the popular stationary bike and fitness company. From releasing its new Bike+ in September (while dropping the price on its original Bike), to partnering with Beyoncé in November, and settling yet another lawsuit against a competitor (this time Flywheel) in February, the company continues to gain momentum heading into the winter season as it grows its presence in the U.S. fitness market.
This time, the latest development involves a major acquisition—$420 million and all—of the global fitness equipment manufacturing giant, Precor, to be finalized in early 2021. Peloton announced the news on December 21 in a press release.
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Since the start of the pandemic, Peloton’s membership and home bike sales have surged as Americans look for ways to stay fit at home. In its latest fiscal report, Peloton reported a year-over-year increase in connected fitness subscriptions by 137 percent (to 77.8 million) and a 232-percent year-over-year increase in total revenue (to $757.9 million).
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The Precor acquisition will expand Peloton’s equipment production stateside, with one goal being to speed up the delayed delivery times of its home bikes because of current high demand. Precor has two U.S. facilities—in Whitsett, North Carolina, and Woodinville, Washington—totaling “625,000 square feet of U.S. manufacturing capacity with in-house tooling and fabrication, product development, and quality assurance capabilities.”
Along with expanding production of its current line of products, Peloton will also make use of Precor’s research and development team, which boasts close to 100 employees.
Precor has produced commercial fitness products for over 40 years, including stationary bikes, treadmills, and strength training equipment. Notably, the company has offered a variety of licensed Spin bikes.
Peloton has also expanded the free trial period for its digital membership to two months, until January 31, just in time for the New Year.
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